Steel Dynamics, Quest Diagnostics, Welltower, BP Capital price; Apollo markets dollar notes

By Cristal Cody

Tupelo, Miss., Dec. 9 – Steel Dynamics, Inc. led deal volume in the high-grade bond market on Monday with a $1 billion two-part offering of fixed-rate senior notes that priced tighter than guidance.

Also during the session, Quest Diagnostics Inc. sold of $800 million of long 10-year senior notes.

Welltower Inc. came with $500 million of green senior notes due Feb. 15, 2027.

In addition, BP Capital Markets America Inc. priced $500 million of guaranteed notes due March 30, 2050.

In other activity, Apollo Management Holdings LP marketed a dollar-denominated Rule 144A and Regulation S offering of subordinated notes.

About $5 billion to $10 billion of supply is forecast this week with volume expected to thin over the remainder of the year, according to market sources.

Investment-grade issuers priced more than $15 billion of paper last week, in line with forecasts of about $15 billion to $20 of deal volume.

The bulk of issuance this week is expected to be front-loaded ahead of the Federal Reserve’s monetary policy rate decision on Wednesday, sources said.

No changes in the Federal Reserve’s monetary policy are expected at the final meeting of 2019, a source said.

The Federal Reserve has trimmed rates three times this year. The final cut announced in October lowered the target range for the federal funds rate to 1½% to 1¾%.

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